Over 50, short term mortgage

k6chris

As the kids have (almost) flown the nest, my partner and I are thinking about downsizing. The problem we have is in the area we want to down size to, you pretty much have to be a cash buyer and we don't want to sell our existing house first and then start the process of hunting around. I am 51 and my partner is 59, we are both in full time employment. We have some savings, enough for a reasonable deposit on a smaller house, but nowhere near enough to cash-buy a smaller house.

What we were thinking about is looking for a short-term mortgage, to allow us to buy a smaller house (acting as a cash buyer) and then subsequently to sell out original home and repay the short-term mortgage. The period of the gap could be anything from 6 months to 2 years. The questions that spring to mind are;

1) Is getting a mortgage as an over-50 still a problem?

2) Is getting a mortgage that we intend to pay back in less than 2 years a problem?

3) Are there any 'gotcha's with things like capital gains tax as we will have two homes for a period of time??

Many thanks

Chris

Senior_Paper_Monitor

1) It causes some potential complications (primarily around affordability)


2) Yes - if lender's see this as your plan many will 'walk'


3) no -there is an exemption period


You don't say whether there is a mortgage on the first property - or what your income post/past retirement is so difficult to even guess at what may or may not be possible - I suspect a broker will be best bet to piece an overall deal together for you.